Systems and methods for administration of financial products

ABSTRACT

The principles and embodiments of the invention relate to systems and computer-implemented methods for administering financial product accounts that provide reward benefits. An attribution rate on an investment in a financial account can be generated as benefit rewards received from the use of credit cards in a credit card account. The method can comprise issuing credit cards to customers, and receiving invested funds into corresponding financial accounts for each customer, wherein the financial accounts are configured by the computer-implemented method as a saving vehicle selected by the customers for investment. The computer-implemented administration system can comprise a credit or debit card provided to a person having an account, a first computer system having communication hardware for receiving credit or debit card data over a network, and a non-transitory computer readable media having an account database configured to record monetary values in the account.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application claims the benefit of U.S. Provisional Application No.61/645,749, filed on May 11, 2012, the disclosure of which is expresslyincorporated herein by reference thereto.

BACKGROUND OF THE INVENTION

Field of the Invention

The subject disclosure relates to methods and systems for creating,offering, and administering financial products such as annuities, lifeinsurance, and other policies issued by life insurance companies.

Background of the Related Art

In general, investment products directed to implementing a savingsvehicle for consumers have had a number of drawbacks. For example, theseproducts are typically specialized savings products which are acquiredand administered by companies and systems that are distinct (at leastfrom the consumer's perspective) from the everyday financial tools thegeneral public is comfortable with, such as credit cards or bankaccounts. As such, persuading consumers to sign up for these savingsvehicles can involve challenges in familiarizing consumers with theproducts, integrating the products with consumers' everyday lives (andthe related computer administration of the products and relatedservices), and connecting with consumers through different marketingchannels. Existing systems are also deficient in providing financialproducts that promote customers to save by participating in aninvestment product and also provide additional spending capability toconsumers in connection with the saved principal. Investment productsoftentimes “lock up” the invested capital, for example, for the purposeof accumulation. In such products, the saved principal in the financialaccount will likely have restrictions on the ability to withdraw fromthe investment or may include withdrawal surcharges.

One industry example demonstrating deficiencies in the prior art areretirement products offered by the life insurance industry. Retirementproducts offered by the life insurance industry, typically in the formof deferred or immediate annuities, attempt to provide the policyholdertax-preferred accumulation of assets which can then, at the option ofthe policyholder, be used to convert to a tax-preferred income streamthat the policyholder may not outlive.

Deferred annuities are typically designed by the industry to have anaccumulation phase followed by an optional annuitization phase. Duringthe accumulation phase, interest is credited to the policyholder'saccount value and these credits are not currently taxed. In exchange fornot being currently taxed the policyholder is penalized for earlyterminations or surrenders—typically in the form of a significantsurrender charge imposed by the issuing company, and by the IRS in theform of a 10% penalty tax in addition to the ordinary income tax rate onany earnings in excess of the policyholder's basis in the annuity,should the earnings be withdrawn prior to the policy owner attaining age59½. Accumulation earnings are taxed using ordinary tax rates which canapproach 50% at the state, federal and local (if applicable) level—uponany withdrawal. If the accumulation amounts are used instead to fund alifelong stream of annuitization payments, the earnings in excess ofbasis are still taxed at ordinary rates, with an amount allocated toprincipal which is excluded each year. Effectively, then, annuitiesprovide tax benefits which amount to “deferred ordinary” treatment onany earnings. This is similar, but not identical to, qualifiedretirement accounts such as 401(k)s, which also provide for deferredordinary tax treatment of earnings.

The amount of tax efficiency provided by deferred ordinary treatment onearnings is not very significant—even over relatively long periods—andthis can be a major flaw in the current products offered by the lifeinsurance industry. For example, consider a policyholder who pays state,local, and federal tax at a combined 40% ordinary marginal rate. Assumethe policyholder chooses between holding an annuity for 20 years andthen withdrawing the proceeds versus holding an account which iscurrently taxable. Assuming a pre-tax interest rate of 5% on bothproducts, the taxable account obviously produces an after-tax yield of3% (tax is 40% of 5%, or 2%, or 200 basis points). In the annuity case,the accumulation at 5% for 20 years results in an amount of gains of1.65 per dollar invested. The 1.65 is taxed at ordinary rates, leavingthe policyholder with after-tax proceeds, including basis, of 1.992units per dollar invested, for an annualized after-tax return of 3.51%.Thus the annuity has provided a 51-basis-point “pickup” in after-taxyield compared to the taxable account (3.51% for the annuity withdeferred ordinary treatment assuming no 10% penalty, versus 3% for thecurrently taxable account example). While not completely insignificant,the tax benefit of 51 basis points reflects the limited nature ofdeferring ordinary taxation. At the same time, the policyholder mustforego liquidity at the risk of paying tax penalties and surrendercharges. In particular, the surrender charges result from the need oflife insurance companies to pay sizeable commissions to agents to sellannuity products, ironically, in part, due to the small pickup inbenefits at the expense of multi-year illiquidity.

In the life insurance industry example, as mentioned above, the priorart is lacking due to the failure of providing real purchasing orconsumption power protection during the accumulation phase so thatconsumption derived from annuitization dollars are not eroded due toinflation—both expected and unexpected—operating over long periods oftime and due to unfavorable taxation. Thus, current state of the artannuity products provide inferior after-tax and after-inflation returns,i.e., after-tax real returns, which are the primary risk-adjustedquantities that matter for deferred consumption, are inferior in thecurrent art.

Also, to the extent current-art annuities underperform on a realafter-tax basis, they impose risk on policyholders that their lifetimeconsumption during annuitization will be lowered or will not provide thelongevity protection that annuitization is exactly designed to provide.

At least one new product to achieve the objectives of superior (1)after-tax, (2) after-inflation, and (3) lifetime consumption is needed.

Other deficiencies may also exist in existing products and relatedsystems and methods that would be evident to those of ordinary skill inthe art.

SUMMARY OF THE INVENTION

In accordance with the principles of the present invention, methods andsystems may be provided for administering financial product accountsthat provide reward benefits.

The principles and embodiments of the invention relate to acomputer-implemented method of administering financial products thatgenerate value in the form of benefit rewards received from the use ofcredit cards. The method can comprise issuing financial transactioncredit cards to customers, and receiving data indicating investment offunds by customers into corresponding financial accounts for eachcustomer, wherein the financial accounts are configured by thecomputer-implemented method as a saving vehicle selected by thecustomers for investment. The transaction information may be receivedfrom one or more remote computer systems, where the information maycomprise credit card transaction information that is received inresponse to the use of the issued credit cards by customers when thecustomers spend available credit on their corresponding cards. Themethod can further comprise processing the received transactioninformation and one or more structural characteristics underlying thefinancial accounts and in response generating one or more outputsrepresenting current reward benefits that presently accrue to thecustomers that provide additional spending resources to the customers,wherein the processing comprises generating the amount of rewardbenefits as a form of value received upon spending by customers from thecustomers' use of their credit cards, and wherein the processingimplements a model that quantifies a predetermined value attributionrate specified for the financial account by issuing benefit rewards forthe customers' consumption in response to the customers' use of theircredit cards. The method may also comprise transmitting informationcommunicating the reward benefits currently available for consumption bycustomers. The financial accounts may be annuities, life insurancepolicies and/or accounts, such as mutual funds, brokerage and otheraccounts which administer, custody and service financial assets ofcustomers.

The computer-implemented method may further comprise crediting the firstfinancial account at a predetermined interest rate that is at or above aminimum allowable interest, e.g., it could be set at a level lower thanthe average rate credited on similar products and which will not fallbelow the minimum allowable interest rate under state laws, and storingthe new amount of the first financial account in a database.

The computer-implemented method may also further comprise determining amaximum reward amount available during a specific time period, as apercentage of the amount of funds in the financial account, wherein themaximum amount of rewards may be calculated at the start of a fiscal orcalendar year, and wherein the reward amount is subtracted from themaximum reward amount to determine a remaining reward amount. Themaximum reward amount for a specific time period may include all or aportion of remaining reward amounts rolled over from previous timeperiods.

The percentage used to determine the maximum reward amount availableduring a specific time period can also increase as a function of timethat the customer maintains the financial account, thereby providing anincreasing maximum reward amount over time, where the time period maybe, for example, a month, a calendar year, or a fiscal year.

The computer-implemented method may further comprise discontinuingcrediting a reward amount to the reward account when the remainingreward amount reaches zero.

The computer-implemented method may also comprise associating one ormore additional third-party financial accounts with the financialtransaction card, determining the total account value of the one or moreadditional third-party financial accounts, and determining a percentageof the total of all third-party financial accounts to be eligible forreward amounts through use of the credit or debit card in making apurchase. The percentage of the total of all third-party financialaccounts to be eligible for reward amounts may be combined with thepercentage of the amount of funds in the financial account eligible forreward amounts to increase the maximum reward amount available during aspecific time period.

Principles and embodiments of the invention also relate to optionallydiversifying the risk of payment on an accrued reward by transferringall or part of the risk of default on the payment of the rewards to asurety company for a fee, wherein the surety company may provide anunsecured guarantee of any unreimbursed rewards accrued by the one ormore customers through use of their credit cards.

Principles and embodiments of the invention also relate to a computerimplemented method of accumulating value in a tax deferred account fromthe use of an associated debit or credit card, which comprises creatinga tax deferred account for a customer in a non-transient computermemory, depositing a principal amount in the tax deferred account andrecording the amount in the computer memory, providing a debit or creditcard to the customer that is associated with the tax deferred account,specifying a predetermined time period within which a percentage of theamount purchased using the credit or debit card is credited to thecustomer as a reward, wherein the time period is a calendar year or afiscal year, receiving data at a computer system when the customer'sdebit or credit card is used to make purchases, wherein the dataincludes the amount of the purchase, crediting a percentage of thepurchase amount to the customer as an accrued value, and storing thecredited amount in the computer memory, tracking the amount purchasedusing the credit or debit card against the total amount available as areward for purchases, determining a remaining amount available forpurchases by subtracting the credited amount from a predeterminedavailable amount established for the time period, and preventing thecrediting of a percentage of the purchase amount to the principal amountof the tax-deferred account when the amount purchased using the creditor debit card exceeds the total amount available for purchases in apredetermined time period.

The method can further comprise providing a surety on payments to thecustomer for the accrued value of their rewards for a period of timebetween the time a reward is credited to the customer as a percentage ofthe amount purchased using the credit or debit card and the time thecustomer is reimbursed, and transmitting at least a portion of theamount of the accrued value of the reward to the surety company, whichmay include payment of a surety fee, to receive a guarantee of at leastpart of the payment on the accrued value until the customer receives thefull amount of the accrued reward. The risk for payment on thecustomer's reward amount for default is thereby split between theinstitution holding the financial account and the surety company.

The value of the rewards accrued by one or more customers may becommunicated to the one or more surety companies for storage in adatabase to track a current amount of risk guaranteed, and toperiodically update a record of the received fees and amount ofguaranteed risk. The surety company may process the data on a currentamount of guaranteed reward risk to calculate an amount of fees for therisk coverage, and communicate to the insurance company the amount ofcurrently owed fees.

The method can further comprise establishing a credit rate at the timethe tax-deferred account is created for the customer; determining aninterest amount to be credited to the tax-deferred account bymultiplying the principal amount in the tax deferred account by theestablished credit rate for the predetermined time period, combining theinterest amount with the principal amount, and recording the combinedamount in the computer memory configured to store amount values of theaccount, wherein the combined amount replaces the previously recordedprincipal amount as a new principal amount. The percentage of thecombined amount in the tax-deferred account that is available forrewards can be a function of time, wherein the available percentageincreases with time to provide increasing rewards to the customer forthe longevity and fidelity of the tax-deferred account with a financialinstitution administering the tax-deferred account and/or credit cards.

The method may further comprise identifying additional tax-deferredaccounts created by one or more third parties based upon a referral bythe customer, recording a principal amount deposited in the additionaltax-deferred accounts in the computer memory, and adding a percentage ofthe total amount of principal deposited in the additional tax-deferredaccounts to the value of total amount available for purchases within thepredetermined period, wherein the percentage of the total amount ofprincipal deposited in the additional tax-deferred accounts is theproduct of an account value percentage and a reward percentage. Theaccount value percentage may also be a portion of the additionaltax-deferred account values and the reward percentage is the portion ofthe eligible portion of the tax-deferred account values.

The principles and embodiments of the invention may also relate to acomputer-implemented administration system for providing rewardaccumulation to an accumulation account through a credit or debit cardassociated with an annuity account, which comprises a credit or debitcard provided to a person having a valid annuity account having anon-zero balance, a first computer system comprising communicationhardware configured to receive data over a network regarding the use ofthe credit or debit card in making a purchase, and transmitting dataregarding the accumulation account to the person having the annuityaccount, a non-transitory computer readable media having an accountdatabase configured to record a monetary value deposited into an annuityaccount created by the person issued the credit or debit card, a valuefor one or more third-party accounts associated with the annuity accountcreated by the person, and a value accumulated in the accumulationaccount through use of the credit or debit card, a processor configuredto process computer instruction codes for carrying out the steps of:storing the monetary value deposited into an annuity account in thedatabase, determining an interest amount to be credited to the person'saccount based on a defined interest rate applied over a predeterminedperiod, wherein the interest rate is at or above a minimum allowableinterest rate under state laws, determining a percentage of the annuityaccount to be eligible for reward amounts through use of the credit ordebit card in making a purchase, identifying third-party accounts to beassociated with the annuity account through referral by the person thatcreated the annuity account, calculating a total of all third-partyaccounts associated with the annuity, storing the total of allthird-party accounts associated with the annuity account in thedatabase, determining a percentage of the total of all third-partyaccounts to be eligible for reward amounts through use of the credit ordebit card in making a purchase, combining the percentage of the totalof all third-party accounts to be eligible for reward with thepercentage of the annuity account to be eligible for reward amounts, andstoring the total eligible amount in the database, determining theamount that was used for a purchase with the credit or debit card, andsubtracting the amount from the total eligible for reward, crediting areward amount to the accumulation account, and storing the newaccumulation account value in the database, and transmitting data aboutthe accumulation account to the person over a network. The data aboutthe annuity account may include the amount awarded to the customer inthe form of rewards on the credit card for purchases. Rewards may be amerchant discount which could include points credited to the creditcard, rebates on the price of purchases (e.g., coupons), and/or cashback to the customer. The award of such points and rebates may be in thesame form as conventional credit card reward programs. The valueattribution rate under the rewards program will preferably be higherthan the rate available from the interchange fees. The interchange feescould, if desired in some embodiments, be used to fund a portion of therewards program but an additional component would also be required tosufficiently fund the higher value attribution rate. The administrationsystem may also have the database further configured to record apercentage of the annuity account to be eligible for reward amounts.

Embodiments of the invention have been described in reference toannuities, however the inventive features of these embodiments can beapplied to other financial accounts, for example, life insurancepolicies, qualified retirement accounts, deferred-tax accounts, mutualfunds, and other accounts having custody of a customer's assets, whichare considered within the scope of the invention.

Embodiments of the administration system may have the communicationhardware further configured to receive a current Consumer Price Indexvalue over a network from a remote computer system, and the processor ofthe first computer system carries out the additional steps of adjustingthe reward percentage applicable to transactions using the credit ordebit card based on the current Consumer Price Index value.

Embodiments of the administration system may also have the communicationhardware further configured to receive data regarding the amount thatwas used for a purchase with the credit or debit card from a secondcomputer system.

The principles and embodiments of the invention also relate to systemsand apparatus comprising the necessary electronics that can beconfigured to perform the method and process steps described herein. Theelectronic systems and apparatus can comprise random access memory(“RAM”), and non-transient computer-readable media that may be permanentand/or semi-permanent memory, such as hard drives, complementary metaloxide semiconductor (CMOS) memory, and flash memory orelectrically-erasable, programmable, read-only memory (EEPROM). Theelectronic systems and apparatus can also comprise processor(s) that canread the instructions from a computer-readable medium and cause theelectronic systems and apparatus to perform the steps of the differentembodiments of the invention and to carry out any one of the methodsdisclosed herein. The electronic systems and apparatus can also comprisethe electronics necessary for communication over a telephone or computernetwork as would be known in the art.

The steps of the computer-implemented methods described herein may bewritten to or otherwise stored on a non-transient computer-readablemedium as computer instruction codes and/or data. A computer-readablemedium such as a floppy disk, CD-ROM, DVD, etc., may thereby be used tostore the processes, techniques, and information illustrativelydescribed herein.

The steps described herein may be performed in different combinations orin different sequences as appropriate. The steps may also be combinedwith other processes, steps, or systems illustratively described herein.Each and every one of these permutations and combinations is separatelydeemed to be an embodiment herein in its own right. It is thereforeintended that all of these embodiments, examples, variations, andmodifications thereon are meant to be encompassed within the spirit andscope of the present invention as set forth in the following claims.

It should be appreciated that the subject technology can be implementedand utilized in numerous ways, including without limitation as aprocess, an apparatus, a system, a device, a method for applications nowknown and later developed, or a computer-readable medium. These andother unique features of the system disclosed herein will become morereadily apparent from the following description and the accompanyingdrawings. The system is also applicable to other types of accounts whichstore value and credit interest or provide investment returns.

BRIEF DESCRIPTION OF THE DRAWINGS

Further features of this invention, its nature, and various advantageswill become more apparent upon consideration of the following detaileddescription, taken in conjunction with the accompanying drawings, inwhich like reference characters refer to like parts throughout, and inwhich:

FIG. 1 is a high-level functional block diagram of a system and networkfor implementing financial services and products in accordance with oneembodiment of the present invention.

FIG. 2 is a functional block diagram illustrating a computer systemconfigured to be in communication with other remote systems inaccordance with one embodiment of the present invention.

FIG. 3 is a diagram of a functional block diagram illustrating anoperational relationship between rewards and account value in accordancewith one embodiment of the present invention.

FIG. 4 is a diagram of a functional block diagram illustrating anembodiment in which administration of the financial account and creditcard can be operated on different computer systems in accordance withone embodiment of the present invention.

FIG. 5 is a diagram of an exemplary structure of a financial product inaccordance with one embodiment of the present invention.

FIG. 6 is a flow chart illustrating a process for issuing rewardsbenefits based on an attribution rate in accordance with one embodimentof the present invention.

FIG. 7 is a flow chart illustrating a method for providing investmentproducts having associated credit cards for receiving an attributionrate on the investment amount in corresponding credit card accounts inaccordance with one embodiment of the invention.

FIG. 8 is a flow chart that illustrates an example of the steps forcarrying out one embodiment related to renewals in accordance with thepresent invention.

FIG. 9 is a flow chart that illustrates another example of implementinga referral program as part of the financial system in accordance withone embodiment of the present invention.

FIGS. 10A and B together make up a table that illustrates an operationof one or more computer systems implementing a debit card and annuityfinancial product in accordance with one embodiment of the presentinvention.

FIG. 11 is a high-level functional block diagram of a system and networkfor implementing a surety in accordance with one embodiment of thepresent invention.

FIG. 12 is a flow chart that illustrates an example of implementing aguarantee as part of the reward program in accordance with an embodimentof the present invention.

DETAILED DESCRIPTION OF THE INVENTION

The invention relates to a system, possibly including many differentsoftware and hardware components, that can provide a new financialproduct to customers. For example, in one implementation, a customeropens a card account with a card issuer and, if the customer also opensan annuity or other financial account, the customer is entitled to arewards program on the issued card. In this example, there are nochanges to the value of the financial account such as the annuity valueor to the terms of the account policy such as the annuity policy. Inapplication, the rewards are in effect moving from the annuity to thecard. The rewards the customer is eligible for on the card) will becalculated as a function of the amount deposited in the annuity account.In this example, the rewards are structured to use the interchangerevenues but are generally explicitly more than a share of interchangerevenue (generated from credit card transactions). In this example, therewards are a proportion of the overall long-term benefit of having anannuity or other investment product. Unlike in prior art financialproducts where value is measured in earnings or returns, the presentinvention's value is differently derived. Part of the value derives fromannuity crediting, which has a character of interest income. The otherpart of value is derived from debit card or credit card rewards, whichoften have the character of merchant discounts as is the case with cashback rewards earned from the purchase of goods or services. In thismanner, the financial product gives value to the customer relating totheir investment by issuing rewards that are generally higher than theinterchange rates.

The merchant discount can be credited to the credit card account aspoints that can be redeemed to reduce or eliminate the cost of apurchase, for example, airline points that can be used to obtain anairplane ticket for a reduced price, as in a conventional credit cardpoints program. Points may also be “cashed-in” for coupons on productsand services, as a check, as a deposit into an account (e.g., brokerageaccount), or applied to a credit card bill to reduce the amount ofpayment due. The credit card account record in the database may includea field for such points that can be updated as they are earned throughpurchases. The amount of points credited to the customer's account maybe communicated to the customer. An interface may be configured by thecomputer system and provided to the customer to allow them to select howto redeem the points.

For example, a standalone annuity might pay a 4% annual interest rateand a standalone cash-back credit card might offer 1% cash-back. In thisexample, the financial product can have an annuity with a 1% interestrate and 20% cash-back (on credit card purchases worth up to, forexample, 20% of the annuity's balance) on the associated card ifdesired. Rather than only crediting interest to the annuity, where thatinterest is virtually inaccessible by the policyholder until retirementand where it is subject to taxation upon withdrawal, customers can begiven rewards on the associated card with a value that offsets the“reduction” to the annuity interest rate. For example, a customer isable to get rewards (e.g., monthly), well before retirement. All or mostof the rewards are not added into the financial account because thiswould render the reward illiquid and potentially subject to taxes, aswell as penalties for early withdrawal. There may be exceptions oralternative implementations that may still employ this principle. Forexample, rewards that are earned in the credit card could be in the formof cash that can be issued as a check to the customer and the customerwould have the freedom to deposit the check in the financial account orotherwise use the cash. Another example, can be that rewards earned inthe credit card account could be added to the financial account after aninvestment period of the financial account.

Embodiments illustratively described herein can create additional valuefor the customer because rewards are not taxable and because savings aregained from more efficient distribution and marketing(direct-to-consumer distribution) that are passed along to the customeras rewards. Other structural advantages can include continued loyalty asan annuity customer, demonstrated by additional deposits, renewals, andpersistency, which will entitle the customer to additional rewards andpenalty-free liquidity.

Annuities are one example of a financial or investment account that isparticularly suited to benefit from the systems and methodsillustratively described herein. Other investment products or accountsare also applicable, such as alternative insurance or investmentproducts (e.g., life insurance, mutual fund, or brokerage account).Other examples of investment products or products can includetax-deferred accounts such as 401(k) accounts, retirement accounts,IRAs, or other such accounts. Other investment products or accounts caninclude bonds, mutual funds, stock investments, assets stored inanon-regulated account, or trusts.

As an option, a referral program can be incorporated into the system.The referral program can incentivize customers of the financial productto refer others to sign up for the financial vehicle. This can offer analternative to the use of brokers or sales representatives to sell thefinancial product. This also reduces expenses associated with payingcommissions to brokers or sales representative.

Another option that can be implemented is to include surety system,offered by a third party, surety company, that guarantees the rewardsprogram. The surety system can reduce the customers' risk profile forthe investment by having a second entity (e.g., the surety company,which is typically external and independent from the financial accountprovider) guarantee that the customer will receive earned rewards underthe rewards program (e.g., even if the financial account provider, suchas the annuity provider, cannot fulfill its related account obligation).To further clarify, in some embodiments, the provider of the financialaccount and the credit card account can be the same entity (e.g., oneentity implements a computer system or network of computer systems intheir private network that administers and maintains the financialaccount and a separate credit card account) and in other embodiments,these could be separate distinct entities and corresponding computersystems. The surety company and their corresponding computer systemwould typically be separate from the financial account provider if thereduced risk profile is sought to be implemented.

The subject technology would preferably utilize, if not be fullyexecuted, modern computing technology. The computer technology isuser-interactive and may be self-contained so that users need not leaveor venture to another address within a distributed computing network toaccess various information. The following discussion describes thestructure of such an environment, like the Internet or many commonintranets, but further discussion of the methodology of one or moreembodiments of the present invention is described elsewhere herein.

The computing environment includes one or more servers which communicatewith a distributed computer network via communication channels, whetherwired or wireless, as is well-known to those of ordinary skill in thepertinent art. The server hosts multiple Web sites and houses multipledatabases necessary for the proper operation of the subject technology.

The server is any of a number of servers known to those skilled in theart that are intended to be operably connected to a network so as tooperably link to a plurality of client computers via the distributedcomputer network. The plurality of client computers can be desktopcomputers, laptop computers, personal digital assistants, cellulartelephones, and the like. The clients allow users to access informationand run applications on the server and locally. The server and clientshave displays, input devices, and output devices as would be appreciatedby those of ordinary skill in the pertinent art.

An embodiment of a method of the subject technology includes:

1. A life insurance company links a debit card to a customers deferredannuity (variable or general account), immediate annuity, or lifeinsurance policy;

2. Alternatively, a life insurance company issues its own branded creditcard to deferred annuity, immediate annuity, or life insurancepolicyholders;

3. In either the DC or CC (debit, and credit card, respectively)embodiment, the DC or CC will provide rewards upon the purchase of goodsand services. As known in the art, these rewards may be of thecash-back, miles, or reward points, variety, where miles and points canbe redeemed for additional goods and services and where cash-backrewards rebate a portion of the cost of goods or services purchased withthe DC or CC back to the customer's DC or CC, and, optionally to thelinked annuity or other account to which the DC or CC is linked;

4. In a preferred embodiment, the crediting rate of the life company'spolicyholder's deferred annuity (or other product as mentioned above) ismaintained well below the market rate offered by other competitors. Inone embodiment, the crediting rate which is guaranteed by the company isset to the statutory minimum (currently 1% in most states for fixed rateannuities in Q1 2012, for example). For products such as indexedannuities, which offer a crediting rate which is tied to the performanceof an index such as the S&P 500, the life insurance company offers itscustomers smaller participation rates, lower caps, smaller income riderbenefits, and otherwise significantly lower guarantees than itscompetitors;

5. In a preferred embodiment, the total value attributed to the customeris (1) the crediting rate on the annuity and (2) the rewards related topurchases made on the DC or CC. This may entail lowering the annuitycrediting rate to the lower end of those offered in the market;

6. The DC or CC rewards may also be inflation-linked, for example, andmay increase annually based upon the annual increases in the ConsumerPrice Index—all urban consumers (CPI-U index, expected or unexpected);and

7. The reward derived from consumption-purchases made on the DC or CCwhich provide cash-back rewards—are inflation-linked and not taxable,whereas only the annuity crediting rate is taxable in a deferredordinary manner. The result is an efficient after-tax, after inflationor real after-tax consumption stream provided to the policyholder as thebelow example demonstrates.

A high-level functional diagram for implementing features of systems ormethods for providing financial services or products is provided inFIG. 1. With reference now to FIG. 1, financial transaction card 10 canbe issued by a financial institution, which may also administer anassociated financial product. Financial transaction card 10, alsoreferred to as a credit card, can be a conventional credit card or debitcard, which may contain information on portable non-transitory magneticmedia. It should be understood that credit cards or debit cards caninclude instruments that do not necessarily require the possession of aphysical card. For example, it should be understood that credit cards ordebit cards can be inclusive of software and data on a smartphone,flashdrive, or a cloud service that is connected to a credit card ordebit card account by which customers use their credit card or debitcard account in making financial transactions using available financialresources on their credit or debit card account. At least one reason forthis is that there may be an expected evolution in credit cards or likeaccounts with respect to the use or need of physical cards or physicalmedium. Credit cards or debit cards are also understood to include cardsthat include an on-board chip that is used for updating card data oraccount information.

For the sake of brevity, it should be understood that a reference tocredit cards is also applicable to debit cards unless otherwisedistinguished. Financial transaction card 10 can also be another form ofportable financial account device that carries a non-transitory memoryfor storing financial and identification information. Financialtransaction card 10 may be used by the customer to engage intransactions at a vendor's transaction site, which may be, for example,a Point-of-Sale system or a website 50; and the related transactionalinformation is communicated from the vendor through network 99. Thefinancial institution administering the card and/or financial accountcan receive the related transaction information from a paymentprocessing service (e.g., PayPal™) that received a payment request for atransaction or can receive the related transaction information throughdirect (e.g., through network communications with the vendor) orindirect means (e.g., through an intermediary that first receives theinformation). Network 99 may be one or more interconnected computernetworks and network resources, including, for example, servers,storage, applications, or other resources or communications connections.If desired, information may be communicated back to and stored on thestorage carried by the credit card or a customer's equipment to updatethe stored information for later use or reference.

The financial institution can have computer system 100, which cancomprise one or more computers, servers, laptops, tablets, smartphones,peripherals, etc. Computer system 100 receives the transactioninformation through network 99 at its communication hardware 140.Communication hardware 140 may be internal components of a computer orseparate distributed hardware that connects the computer system to anetwork. Communication hardware 140 receives the transactioninformation, which may include the transaction amount, identificationinformation to associate the transaction with the customer, and anassociated financial product. Other information can also be received,such as information relating to the duration the customer has ownedfinancial transaction card 10 and the associated financial product andrelated date information for determining an accounting period in whichthe transaction took place. Communication hardware 140 is configured totransmit financial account and credit card account information to thecustomer for display or storage.

FIG. 1 further illustrates computer system 100, which may comprisecomputer 110 having one or more central processing units, andnon-transient memory 120 for storing data and software. Computer system100 is configured to carry out the steps encoded in softwareinstructions for manipulating the data received over the lines ofcommunication and storing data (e.g., modified data) in memory 120. Thecomputer system may further comprise transient memory, for example, RAM,for processing the data and instructions, and peripherals such asdisplays, printers, keyboards, mice, and interface devices known tothose in the computer arts. Memory 120 can be an internal or externaldatabase. If desired, one or more computers and storage systems can beused to implement computer system 100.

An embodiment of computer system 100 is illustrated in FIG. 2. Withreference now to FIG. 2, computer system 100 can include processor 110associated with memory 115, and memory 120. Memory 120 can be configuredto include software comprising instruction code 150 (e.g., a residentexecutable software application), and a structured database 125 forstoring data in records. In implementation, memory 120 may beimplemented using multiple computers containing structured databases inorder to provide sufficient database resources to the system. Memory 115would typically be RAM or other form of cached resources that can holdexecutable code and related data in computer operation. Memory 120 willtypically be structured to contain non-transient computer readablemedium for use in operation of the system. Database 125 can includeaccounts information and contain a database that stores pertinent dataand data structures. For example, as shown, data fields 230-239, 240,242, 248 are included in database 125. The values in the data fields canbe interrelated to achieve desired rates of return.

FIG. 2 depicts the electronic relationship between the data related tofinancial account 1 230, credit card account 1 231, and reward component240. If desired, the reward component or amount may be a separateaccount associated with the credit card account. The values stored inmemory 120 for reward component 240 can be calculated from values storedin its associated financial account 230, and from transaction dataobtained from the use of the credit card assigned to credit card account231. Processing by the computer system is performed to calculate anamount of reward benefits to credit to the customer. The amount ofreward benefits is, for example, determined to be an eligible percentageof the credit card transaction activity generated by the card owner. Ifdesired, the total amount of rewards generated within a particular timeperiod can be limited to a percentage of the amount in the financialaccount. The reward component values stored in memory 120 may optionallybe communicated to an outside surety company to obtain guarantees on atleast part of the reward benefits credited to the customer.

In one embodiment, a financial account is opened and a principal amountis deposited in the financial account by a customer, and in addition, afinancial transaction card is issued to the customer as part of openingthe account. In some embodiments, the computer system will verify thatthe principal and account have been created or exist in the computersystem as a requirement for receiving rewards in the credit card accountbased on credit card activity. Financial account 230 can, for example,be an annuity or a brokerage account, which can comprise data valuesidentifying the deposited principal, interest rates, accrued interest,inception date, termination date, payout rates, age of the customer,names of beneficiaries, etc. The financial transaction card generatesrewards, which can be in the form of a cash flow directly back to thecustomer or if desired, a deposit into a separate rewards accountassociated with the card.

The financial account, which is combined with the spending resources ofa credit card reward program, is preferably a structured saving vehiclethat requires a monetary deposit by the customer and is structured toearn value over time in the account for the customer based on an offeredinterest rate, or other metric. It is generally not inclusive ofaccounts such as everyday transaction accounts; such as checkingaccounts that are structured for the customer's everyday use.

In another embodiment, a financial transaction card is initially openedby a customer and at a later time, the customer opens a financialaccount and deposits a principal amount therein. When the financialaccount is opened, a reward account or component is also created andboth may be associated with the previously opened transaction card. Thisallows the customer to begin earning transaction card benefits. Othervariations in the sequence or timing are contemplated to the extent thatthey do not vary from the principles of the present invention.

The information relating to the account and the card can be entered intocomputer system 100 through an interface and stored in database 125.Database 125 may be, for example, a relational, hierarchical,object-oriented, network, or correlation database. Transaction card 10,reward component 240, and financial account 230 may be related to eachother using customer and/or financial information, where the informationmay be stored in records. The database may be localized on a singlemachine or distributed over multiple machines at the same or differentlocations.

Information related to the financial product accounts may include, forexample, the principal deposited into the account at inception,identification information associating a financial product account to aspecific customer, identification information associating the financialproduct account to a specific financial transaction card 10 (e.g., thefinancial transaction card issued to the customer upon opening thefinancial product account), the period of time that the account isintended to stay open, and the period of time in which financialcalculations and accruals are conducted.

Communication hardware 140 allows the computer system 100 to transmitand receive data over communication lines connected to one or morenetworks, which may be for example, the Internet, LAN, WAN, and MANnetworks, telecommunication networks, satellite networks, and/orwireless networks. Communication hardware 140 may handle the packetizingor depacketizing of data and handle protocol requirement necessary fortransmitting and receiving packets. Communication hardware 140 cantransmit or receive data or information to or from computer system 100,which it is serving.

Financial accounts 230, 232, and 238 can be individual annuity accountsthat are stored in memory 120 and associated with corresponding creditcard accounts 231, 233, and 239, and their reward components 240, 242,and 248, which can be stored in a physically or logically separatememory. Computer system 100 will be configured to maintain accumulationvalues for available rewards benefits that records the running total ofthe rewards granted or available to a policyholder of the associatedannuity account.

One aspect of the financial product is that the amount and calculationof reward benefits in the credit card account is determined by theamount of deposit that the customer has made into the financial orinvestment account. FIG. 3 illustrates an example of these electronicrelationships. More specifically, FIG. 3 illustrates an example of anarrangement of a plurality of financial accounts 129 in database 125.The amount of rewards, which may be subject to a specified maximum,available to a customer for a predetermined financial period iscalculated by the computer system utilizing processor 110, and stored inpart of the record associated with each of the accounts 330-339. Forexample, the system can be configured to be able to provide a maximumamount of reward benefits over a time period. The maximum can be basedon the current account value of the financial account and apredetermined value attribution rate that is paid in cash-back or otherrewards in the credit card account. The available reward amount can, forexample, correlate to the customer being eligible to receive Xpercentage of total credit card transactions up to a maximum total Yamount of transactions as cash-back or redeemable points to the customerduring a particular financial period.

In the event of a withdrawal of funds from the underlying financialaccount, different approaches can be applied to determine and calculatereward eligibility. The customer may be allowed to accrue the fullyear's reward amount of merchant discounts at the start of a new year(i.e., assuming the customer will maintain the investment of financialaccount without withdrawals for a specified period such as a year).Alternatively, the maximum eligible reward amount can be set at the endof an investment period. In another example, the eligibility for rewardscan be adjusted to correspond to the amount of time the funds remainedinvested. In typical embodiments, withdrawal or surrender of investedfunds from the financial account will presently or later reduce theamount of eligible awards (as compared to the amount prior to thewithdrawal. If desired, unredeemed points could be forfeited if thecustomer makes a partial withdrawal or surrenders the financial account(e.g., terminates the investment portion before its agreed or expectedstructural maturity).

The maximum amount of rewards for which a customer is eligible can bedetermined from the financial account value of the preceding year, suchthat the reward program is backwards-looking and the rewards are earnedby maintaining a value in the account for a past period. In thisexample, the customer would have no restriction on the amount of rewardsthey could earn in a given time. This arrangement rewards the customerfor their loyalty by issuing the rewards to a customer that has remainedinvested in the product in a later period.

In operation, after each purchase using one of the issued credit cards,database 125 is updated to reflect the amount of eligible rewardbenefits that are now currently available as a cash-back or rewardbenefit to the customer. The computer system can administer the eligibleand available reward benefits to be in compliance with the specifiedattribution rate on the investment in the financial account over aperiod of time. Additional rewards greater than the available rewardamount may be provided to achieve a specified attribution rate. The datasuch as eligible and available rewards may be transmitted to thecustomer of the associated account so it can be displayed on thecustomer's computer or mobile device, and may also be transmitted to asurety company computer system for processing. The amount of rewardscurrently available, used and/or remaining (e.g., at the end of aparticular reporting or financial period) may also be viewed by logginginto a website of the financial institution providing the annuityaccount and/or credit card. The calculations can be done by theprocessors in data communication with the database.

The computer system can implement a rollover feature. The computersystem can track the amount of eligible rewards benefit that wasconsumed by a customer and whether it has a reached a maximum availableeligible amount. In some embodiments, if less than the maximum eligibleaward is consumed by the customer, the computer system can be configuredto roll over all or some of the remaining amount of eligible awards tothe following year. For example, if a customer has a $100,000 annuity,he may be eligible for cash back rewards of 15% on the first $20,000 ofannual spend on his associated credit card. If he only spends $15,000 ina given year, then in the following year (assuming no annuitywithdrawals) he will be eligible for cash back of 15% on $25,000 ofcredit card spend ($20,000 annual maximum plus $5,000 of rollover). Areferral feature can also be implemented that logically links activityfrom accounts referred to the financial institution to a referringcustomer's account. Each of the account records 330-339 can also belogically associated with one or more of the other stored annul accounts330-339, so that accounts opened upon referral by a prior accountcustomer can be identified to determine additional account values to beused for calculating the maximum reward amount available.

In some embodiments, a system and method can be implemented that dividethe storage and administration of account information between twoentities or systems. For example, a first entity can be responsible foroffering, creating, and administering the financial account and theterms of the rewards to be received based on the financial account fromcredit card usage and another entity can be responsible for storing andadministering the credit card account and issuing the reward benefits onthe card. An illustrative embodiment of this arrangement is shown inFIG. 4. With reference now to FIG. 4, computer system 100 can includemultiple computer systems 420, 430, 440, that communicate with eachother and with one or more other devices 450 that are remote from thecomputer system 100 over data communications lines. The datacommunications can be used for sending and receiving data related toopening accounts and data for administering the credit card accounts andfinancial accounts.

Computer system 100 may comprise separate computer(s) 420 for openingand administering the credit card accounts, and separate computer(s) 430for opening and administering the financial product accounts.Computer(s) 420 and computer(s) 430 can communicate over a data line 431(e.g., wired, wireless, WAN, LAN, Internet, etc.). These computers mayalso be in communication with one or more database servers 440, 450 overdata communication lines 441, 451 for storage and retrieval of datarelated to the financial transaction cards 10 and financial productaccounts.

Computer system 100 may further comprise communication hardware 140 thatcould be integral with one of the computers 420, 430, or hardwareseparate from any particular computer, that connects computer system 100over one or more communication line(s) 461 to remote devices 460. Remotedevices 460 can include a user interface for customers. Computer system100 is configured to send information to the remote device 460 todisplay financial information to a customer and receive informationregarding a card or financial product from the customer.

Computer system 100 is also configured to transmit information tocustomers, so that they can view information, including their currentcash-back amount, potential cash-back left to receive if they continueto use their card, and/or the current value of their financial productaccount.

In one embodiment, the credit card can be issued or administered by adifferent institution than the institution that opens and administersthe financial account. In such an embodiment data necessary to implementand cooperatively administer the financial account, financialtransaction card, and rewards benefits is communicated usingtransmissions between each provider's computer system. For example, thecomputer systems of the entity that offered the financial product with aspecified rate of return from the credit card component, where rate ofreturn is being used generically to include non taxable cash flows, cantransmit the rate of return, the percentage to be used for identifyingthe amount of cash-back, the maximum eligible cash-back amount, and/orother related data to the computer system of the credit card provider inorder to authorize and configure the credit card for that customer toissue rewards in accordance with the specified attribution rate for thefinancial product. Information about current status, usage, accountvalue, or other information can also be communicated between the twosystems.

An illustrative arrangement of a financial product is shown in FIG. 5,FIG. 5 can also reflect an electronic structure and relationship of thecomponents of the product as implemented on computer systems anddatabases. For example, in operation, the computer systems use thestructure and relationship to service the financial product. As shown inFIG. 5, financial product 500 includes two components. A first componentmay be an investment account 510, which is also referred to as afinancial account, having a plurality of structural characteristics,which define the account. The account can include investment amount 520,which may be a lump sum deposit or a series of deposits madeincrementally over a defined period of time. Investment account 510 canhave an accumulation period in which it can have an interest rate 525that is fixed or variable depending upon the type of investment selectedby a customer. If desired, investment account 510 may also have adefined accumulation phase, such as for an annuity account during whicha series of deposits are made into the account incrementally over a setperiod of time. Investment account 510 may also have a definedannuitization phase (if the account is an annuity account) during whichthe account pays disbursements to the customer incrementally over a setperiod of time. In such embodiments, investment account 510 may alsohave a specific age at which time the accumulation phase ends and theannuitization phase begins. Investment account 520 is preferably anilliquid investment such as an insurance policy, retirement account, orother long term (e.g., single year, multi-year) investment structurethat is designed to dissuade customers from redeeming the investmentearly. For example, the financial account will be structured to deductall or a substantial portion of accumulation earning in the financialaccount or deduct a portion of the principal when a withdrawal is madebefore the investment has matured. In such a structure, an earlywithdrawal before the long term investment (e.g., multi-year investment)has matured will deduct withdrawal charges equaling a significantportion of earning in the financial account and/or could deduct aportion of the principal as part of the withdrawal charge. Totalsurrender and withdrawal charges on annuities typically range from zeroto 15%, or more, of any amounts withdrawn early. Optionally, and asknown in the art, an annuity may provide for a percentage of the balancethat can be withdrawn annually without penalty (e.g., 10-20%). Ifdesired, a surrender charge schedule can be implemented for the annuityor financial account (e.g., 5% in the first year, 4% in the second year,etc.). The computer system can be configured to apply theserestrictions. In contrast, conventional checking accounts do notrestrict the use of funds that are available on account. The secondcomponent may be credit card account 550 that provides value to theholder of the financial product as cash-back or other forms of rewards.The credit card account can be characterized by a specific amount ofcredit 560 provided to the customer. Credit card account 550 may have aspecific interest rate charge 565 that is applied to outstandingbalances on the credit card. In the case of debit cards, availablecredit can be the amount of money in the customer's correspondingchecking account and/or any available credit in addition to the amounton deposit in the checking account. Credit card account 550 may alsoprovide the customer a specified rate of rewards 570, which iscalculated as a specific percentage of purchases made with the card, andmay be limited to a predefined maximum amount for a specific period. Ifless than the maximum amount of rewards is used in a given period, theremaining amount may be rolled over into the next period.

Predefined maximum amount of reward 575 could be calculated frominvestment amount 520 of investment account 510 and specified rate ofrewards 570 of the credit card account 550, to achieve an intendedaccumulation rate on the financial product 500.

The customer could receive the cash-back reward as a credit on thecredit card account, or as a gift card issued by the financialinstitution administering the financial product. If desired, the entirevalue can be applied to the card. Other forms of rewards are alsocontemplated.

In addition, embodiments of the invention may optionally include asecured credit card account that is secured by the financial account.The computer system may link investment account 510 to the credit cardaccount 550 as a security for outstanding balances on the card. Ifdesired, a default on payment of accumulated credit card debt may resultin the computer system using funds in the financial account to pay forthe outstanding charges. The computer system can deduct a sufficientamount of principal from the financial account and the information maybe updated in the database. In some embodiments, the computer system maycommunicate the deducted amount to the institution administering thecredit card account. In this manner, the credit card account providesrewards related to the investment account, and the investment accountsecures the credit card.

FIG. 5 also highlights the logical connection of the data thatimplements the financial product using the investment account and creditcard account. FIG. 5 is also helpful to explain that the companyoffering the product implements a two-sided structural relationship in acomputer system in order to publicly offer and implement a specifiedfinancial performance for the product. One aspect of this structure isthat the offering company specifies and publishes a total attributionrate for the financial product and in turn, also specifies and publishesthe value attribution rate for the rewards component and the valueattribution rate for the earnings in the investment account. It shouldalso be understood that other ways of specifying the value attributionrate such as one that is variable or index can also be implemented ifdesired. This structure provides two value streams; one deferred valuestream from the investment account and one current value stream from thecredit card rewards.

The value attribution rate for the second component, the credit cardreward component, is based on issuing reward benefits in response tocredit card transactions. The rewards are received in response tospending as a form of cash-back or points-based merchant discount thatenhances the customer's current spending capability. The attributionrate has to be processed and converted into a form that identifiescash-back or other reward benefits that are currently issued to thecustomer in order to achieve the specified attribution rate. FIG. 6 isan illustrative diagram illustrating a method for processing credit cardaccounts to issue sufficient “earnings” by way of rewards to achieve thespecified value attribution rate.

In step 610, the offering financial company determines a valueattribution rate for a rewards component of the financial product andstores that information on a computer system. The rate will, forexample, be specified in product literature and information to identifyfor customers and potential customers the expected financial performanceof the financial product. For example, the attribution rate for therewards component can be equated to an IRR of 4% and the rate for theinvestment component can be 1%. This investment component could be aminimum allowed by regulatory agencies, or it could be greater than theminimum allowed rate but less than a normal market average or acompetitor's rate. In step 620, a financial model is implemented in thecomputer system that models rewards (e.g., cash-back rewards) to bespecified to achieve the value attribution rate identified for thereward component. The financial model and supporting calculations willbe configured to generate output that achieves the attribution rate inresponse to credit card transactions. In one implementation, when thefinancial product is instantiated in a computer system, the model orprocedures implemented on the computer system can use the investmentinformation from a financial product and the value attribution rate forthe rewards components to generate rewards that achieve attribution rateusing cash-back or benefit rewards payments.

FIG. 7 shows a flow chart illustrating a computer-implemented method forproviding investment products having associated credit cards forreceiving an attribution rate on the investment amount in correspondingcredit card accounts. At step 710, a financial institution issues afinancial transaction credit card to customers. Issuing a financialtransaction credit card can be in response to a credit card applicationsubmitted by a customer. Issuing a financial transaction credit card canalso be the generation of a credit card or similar transactioninstrument that is electronically connected to a financial transactioncredit card account, information carried by the credit card and accountrecords can be connected by way of identifiers such as a card number orpersonal customer information. Issuing the card may also include mailingthe card with necessary encoded information to the customer, orphysically handing the customer a card at a broker or agent's location.In the event, the credit card type instrument can be transmittedelectronically; a message is electronically generated for transmittingthe instrument to the customer. Step 710 can include step 715. Asalready mentioned, at step 715, individual credit card accounts areconfigured in the computer system to be connected to the cards so as toenable computer-implemented administration of the card and the relatedusage of the credit cards.

At step 720, configuring the account can comprise receiving dataindicating investment of funds by customer(s) into correspondingfinancial account(s) for each customer, where the accounts may have oneor more structural characteristics. If desired, a user interface may beconfigured to facilitate entry of the data into a computer system. Thestructural characteristics can be, for example, interest rates paid onmoney in the account and specific returns on investment specified forthe account. Step 720 may include step 725, which is related to theimplementation of the financial account. At step 725, the specificfinancial accounts, which are investments directed to providing asavings vehicle to customers, are configured by computer for the benefitof customers.

In operation, the process steps and substeps can be in a differentorder. For example, the financial account can be first configured andfollowed by implementing the credit card account and related rewardscomponent.

At step 730, transaction information is received from one or more remotecomputer systems comprising credit card transaction information that isreceived in response to the use of the issued credit cards by customerswhen the customers spend credit available on their corresponding cards.At step 740, the computer system processes the received transactioninformation and one or more of the structural characteristics underlyingthe financial accounts to calculate current reward benefits that wouldpresently accrue to the customers. The structural characteristic can bea value attribution rate, current account value of the financialaccount, a cash-back percentage, a referral percentage, a maximumeligibility for rewards, or other data from the financial account thatis used in calculating the appropriate amount of rewards to be issued toindividual customers. At step 745, the computer system, through theprocessing, generates the amount of reward benefits as a form of valuereceived upon spending by customers from the customers' use of theircredit cards. At step 748, the processing implements a model thatquantifies a predetermined value attribution rate specified for thefinancial account by issuing benefit rewards for the customer'sconsumption in response to the customers' use of their credit cards. Thepredetermined value attribution rate can be an characteristic of theaccount, which can be composed of at least two components that includean untaxed reward benefits rate for the credit card and a taxed interestrate for the funds deposited in the financial account.

At step 750, the computer system generates one or more outputsrepresenting the current reward benefits in response to reception oftransaction information. The generated output(s) representing currentreward benefits are implemented to provide additional spending resourcesthat have accrued to the customers. The outputs may be communicated tothe customer providing at least the amount of the calculated rewardbenefits, but may also include additional outputs representing theremaining amount of benefits for which the customer is eligible.

At step 760, the computer system transmits the information communicatingthe reward benefits currently available for consumption by customers,where the information can be transmitted, for example, by communicationhardware of the computer system over lines of communication.

A flow chart in FIG. 8 illustrates the exemplary steps of anothercomputer-implemented of an embodiment of the present invention forproviding a financial product.

At step 810, the financial institution receives personal and financialinformation from the customer or an intermediary for the customer. Thefinancial institution's computer system receives the customer's personaland financial information over lines of communication which may havebeen transmitted over one or more networks to the financial institution.The information may be segregated and stored in one or more record(s) inone or more databases for later retrieval and/or updating.

At step 815, a computer system receives and records a deposit of aprincipal amount provided by the customer into a financial account(e.g., a new investment product) and makes the customer eligible toreceive an interest rate credited to the account, as well as rewardbenefits. The amount is recorded in a database associated with thecomputer system.

At step 820, the interest rate for the account may be set if the type ofaccount selected by the customer is an interest-bearing account, forexample, an annuity, and stored in the database record of the account.In some implementation, the interest rate for the account may be limitedto the minimum rate allowed under state or other applicable law, forexample, 1% for a fixed-rate annuity in most states. The interest ratemay be established for the lifetime of the account, or it may vary overthe life of the account based on other factors, for example, the amountof time the account has been held by the customer, changes in a primerate, and changes in a consumer price index. If the interest ratevaries, a specific formula used to determine the rate at a particulartime may be established and stored in the database record of theaccount.

At step 825, a financial transaction card, such as a credit or debitcard, may be issued to the customer. The card can be associated with thefinancial account and be eligible for earning rewards from its use inmaking purchases of goods and services, as well as potentially otherfinancial transactions. The amount of reward benefits provided to thecustomer may, for example, be limited by the computer system to amaximum value correlated with the amount initially invested in thefinancial account or an amount currently in the account.

If the structure specifies a maximum amount of rewards (e.g., as a wayto control costs), the proportion of the financial account amount usedto determine the maximum reward benefit available may increase with timeto compensate the customer for the amount of time the financialinstitution administers the account, or for changes in the ConsumerPrice Index.

At step 830, when a customer makes a purchase or engages in a financialtransaction using the card, the financial transaction information istransmitted to the financial institution computer system administeringthe financial account or credit card account, and received by thecommunication hardware of the computer system over communication lines.The information may be processed by the computer system and stored inmemory associated with the account and credit card. The financialtransaction information may include, for example, the amount of thetransaction, the date and time of the transaction, the account number,the customer name or other identification, and/or the vendor'sinformation. The financial institution may receive and store one or moreof the pieces of information in a database.

At step 835, the amount of the transaction resulting from use of thecard and received by the financial institution may be used to calculatethe amount of a rebate to be refunded to the customer as a cash-backreward, or credited to a reward account that stores the accumulatingamount of rewards. At step 840, the financial institution determineswhether the duration of the account has expired, and if it has, sends acommunication to the customer requesting him to decide whether he wishesto renew the financial account, or terminate it and receive the amountaccumulated in the deferred reward account.

At step 845, if the customer decides to renew the account, the totalamount in the financial account, including the principal and any accruedinterest, may be rolled over into a new account with a new lifetime andinterest rate. At this time, the deferred reward account may be closedand the total accumulated rewards provided to the customer as a lumpsum. At step 850, if the customer does not renew the financial account,the total value of the financial account may be calculated and a checkcan be prepared and sent to him for the principal and interest. A checkcan also be sent for a total amount that has accrued in the deferredreward account. The financial account, card account, and reward accountrecords in the database may then be closed out and/or archived asnecessary.

FIG. 9 illustrates another embodiment that tracks additional financialaccounts opened by third-parties because of a referral by the customerof the original financial account, and includes a portion of the amountdeposited in each of the one or more additional accounts in thecalculation of the maximum amount of reward benefits available to thecustomer. Each retelling customer assists with marketing the financialproduct to third-parties that may then subsequently open their ownfinancial account based upon the referral. The referring customerobtains additional value from such referral through an increase ineligible reward amounts, which may be proportional to the investedamount(s) of the third party(ies). The increase in eligible rewards canaffect the total attribution rate of the financial product by increasingthe value attribution rate realized on the credit card account.

At step 910, a customer opens a financial account with the financialinstitution which may comprise investing a principal amount in afinancial product offered by the financial institution. Opening of thefinancial account by the financial institution may comprise thecomputer-implemented steps of allocating memory space in the computer,and configuring a user interface for entering the customer's personalinformation and financial data into the computer system. At step 915,the monetary amount invested in the financial product is recorded in acomputer system.

The computer system may store the personal information and financialdata, which may include the principal paid into the account into thenon-transient computer memory. At step 920, a credit card is issued tothe customer for investing in the financial product, which has financialterms that provide for a benefit to the customer in the form of acash-back reward or other rewards for using the credit card. At step925, a computer system performs processing to calculate a maximum amountof reward benefits for which the customer is eligible, as a percentageof the initial amount invested in the financial product.

At step 930, the financial institution determines if other financialproducts have been opened due to a referral provided by the firstcustomer. The determination can, for example, be accomplished bychecking a field in the database for the referring customer and/or thereferred customer. If the financial institution determines that othercustomers have opened accounts and invested in the financial productsthat the financial institution offers, it identifies the amountsinvested in these referral account(s) and configures the database toidentify these relationships between the customers and accounts. Thereferred accounts that are opened because of a referral by a firstcustomer are sometimes referred to as third-party financial accounts. Atstep 935, if the result of step 930 was “no,” the cash-back reward iscalculated from a percentage of the first account value and a percentageof the amount of any card transaction(s) for that customer. At step 950,if the result of step 930 was “yes,” the value of the amount invested inthe referred account is recorded, and is associated with the originalaccount (the account of the customer that made the referrals) in thedatabase for later use in calculations by the computer system indetermining a merchant discount or other reward. The association betweeneach customer and the additional third-party accounts that are openedbased upon a referral, may be stored in a field in the computer systemdatabase.

The relationship between each customer and their referred customersrepresents a network of potential sales representatives that are notemployed by the financial institution. Instead, by providing rewardbenefits to a customer for brining in additional business, the rewardsprogram in effect converts each new customer into a salesrepresentative. This reduces costs to the financial institutionproviding the financial product because customers do not collect asalary or commission. Customer's benefit through increases to the amountof rewards they are eligible to receive, and a resulting increase intheir attribution rate to the extent they accumulate the rewards throughpurchases. Previously referred customers may increase their amount ofeligible rewards by referring additional customers.

At step 955, processing is performed to calculate a percentage of theinvested amount, which is an amount of reward benefits available to thefirst customer. Each new customer is asked to inform the institution ofany referral that led to the opening of the third-party's account. Thisinformation is communicated to and received by the computer system andstored in the database record for the associated account of theoriginating customer. At step 960, a percentage of all referred accountvalues is added to the percentage of original account value eligible forrewards to establish the maximum amount. This maximum amount is reducedby a percentage of each transaction amount for which the credit card isused, and the remaining amount may be communicated back to the originalcustomer to be viewed on a display or user interface. At step 965,processing is performed to calculate the reward benefit based on a totalof two components, the total of the original account value and referralaccount value(s), and a percentage of the amount of a card transaction.

If at some time the account terminates or expires, the review of newaccounts based on referral and the granting of reward benefits wouldalso be terminated for the original account.

An example of an operation of an annuity debit card embodiment of thepresent invention, which is referred to as a Debit Card Annuity or DCAnnuity, is illustrated using the table in FIGS. 10A and B. In theexample of FIGS. 10A and B, it can be assumed that the Policyholderinvests $100,000 premium at time zero with a crediting rate equal to 1%,of the current state minimum. The Policyholder is issued a credit cardor debit card where the card is linked to the invested annuity accountvalue.

In a preferred embodiment, the annuity has modest surrender charges inthe first 5 years, for example, a surrender charge schedule may involveapplying declining charges of 5%, 4%, 3%, 2%, and 1% prior to the 5thanniversary. At each 5-year anniversary, the policyholder may renew theannuity and, in a preferred embodiment, no new surrender charges apply.In other embodiments, a portion of the annuity may be withdrawn withouta penalty or charge.

As apparent to one of ordinary skill in the art, the anniversary termand surrender charge schedule, as well as other example parametersdescribed below, can be assigned or assume values to achieve otherobjectives in a preferred embodiment, such as deferring the amount ofcash-back rewards to a policyholder in order to reward loyalty andpersistence.

In the Debit Card Annuity example, debit card can have a debit cardpurchase rewards program, wherein the reward in year ‘t’ is a functionof ‘t,’ where ‘t’ is the amount of time the policyholder has owned thepolicy with the issuing company (commonly referred to as policy“persistency”), f(t), where f is the fraction of the current accountvalue (AV) for which rewards are eligible and may depend upon time aswell as other factors, r(t), where r(t) is the rebate percentage onpurchases per unit of dollar purchased and which may also be a functionof time as well as other quantities, and RAV, where RAV is the “referralaccount value” and is a function the number of referrals thepolicyholder has provided cumulatively since becoming a policyholderwhere such referrals resulted in the purchase of a policy, c(t) which isthe percentage of RAV that may be subject to cash rebates, and s(t)which is the cash-back percentage applicable to the eligible RAV balancesuch that the product of RAV(t), s(t), and c(t), in a preferredembodiment, is the cash-back rewards in dollars in year t that isavailable to the policyholder based on his referral account value.Similarly, the product of AV(t), f(t), and r(t), provide the cash-backaward in dollars available to the policyholder which is based on his ownaccount value.

In a preferred embodiment, RAV(t) is the time-averaged account value ofpolicies referred to the company by the policyholder. In anotherembodiment, the RAV may be adjusted to include an effect for persistencyof the RAV, where greater persistency in a preferred embodiment may beadditionally rewarded. The rewards may depend upon other parameters aswell.

In a preferred embodiment, cash-back rewards are provided to the annuitydebit card holder. When the card holder makes a purchase, a certainpercentage of the purchase is rebated back to the debit card, and,optionally, that amount can be restored to the annuity balance. As anexample, the cash-back reward in year t may be:CB(t,AV,r,s,c)=g(t,AV(t),RAV(t),f(t),c(t),r(t),s(t))

Where, in a preferred embodiment, f(t) and r(t) are increasing functionsof t. In another preferred embodiment; f(t) and r(t) may increase witht, at an increasing rate, i.e., be convex functions of t. c(t) is amultiplier which scales the referral balances upon which rewards arepaid, and s(t) is a cash-back reward percentage applicable to c(f),which, in a preferred embodiment may also be in increasing function oftime (to provide increasing rewards for the persistency of referralaccount values). Other formulas for rewards are possible and will beapparent to one of skill in the art.

As an example, consider the following AV of FIGS. 10A and B for thepolicyholder over a 20-year period, which assumes the minimum creditingrate of 1% (and also assumes that the policyholder is renewing thepolicy as needed depending upon the policy's terms, to remain a customerover the 20 years). In addition, in the next column to the right, theRAV or referral account values are shown which, in a preferredembodiment, are the annuity balances of other policyholders maintainedwith the company where such other policyholders were referred to thecompany by the first policyholder.

The first column of the table indicates that all cash flows occur at endof year. End of year “0” is the initial investment, which is theequivalent time of beginning of the first year. In the second column,for example, the account value (“AV”) of the policyholder's annuity is$110,462 at the end of year 10 calculated assuming a crediting rate (aminimum allowable under state law, in a preferred embodiment, andcurrently 1%) is credited to the balance each year (assumed at the endof each annual period for simplicity).

As indicated earlier, column one is the end of year date of each cashflow or balance in the above table. AV, in the second column in theabove table, is the account value of the annuity which reflects a 1%compounded crediting rate. RAV is the assumed referral account valueequal to the balance of all annuities referred by the examplepolicyholder under the DC Annuity.

The fourth column from the left in the above table, labeled f(t), is, inthe example embodiment, the percentage of the AV in the same row (i.e.,for a given year of age for the example policy) eligible for cashrebates or rewards. For example, in year 5, 12% of the AV of $105,101can be spent and receive a reward. The next column to the right, c(t),is the amount of RAV that is eligible for reward. In the next column tothe right, r(t) is the percentage cash back in year t that applies to apurchase with the DC Annuity card up to the eligible percentage of AVequal to f(t). For example, in year 5, when the DC Annuity owner makespurchases on her card worth 12% of her annuity balance of $105,101, shewill receive cash back rewards of 2.5% (assuming she purchases the limitof 12% of $105,101 or $12,612, she will receive cash back of 2.5% of$12,612 or $315 as shown in the column “cb on AV” in year 5. A similarcalculation applies to obtain the “cb on RAV” which is the product ofRAV(t), c(t), and s(t) in the example embodiment. The total cash backrewards is the sum of “cb on AV” and “cb on RAV” in the above table. Thecolumn labeled “CR” is the amount of credited interest to the annuityper annum, which, in the example embodiment, credits at 1% per annum.

Of particular interest in the example embodiment is the column labeled“Pre Tax CF” which shows the pre-tax cash flows for the policyholder ofthe DC Annuity. This column shows an investment of $100,000 by thepolicyholder. The policyholder then receives the cash back rewards eachyear assuming the policyholder maximized his purchases on eligible AVand RAV, in year 20, the policyholder is assumed to withdraw theprincipal and accrued interest (compounded at 1%), together withreceiving the final total cash back reward. Of interest is the pre-taxcash flow IRR on the cash back reward benefits and the 1% compoundedcrediting rate. To measure value of the merchant discounts, togetherwith the value of the annuity returns, we employ the familiar concept ofIRR. While IRR is typically used to find the yield on taxable cashflows, it can be used generically on non-taxable cash flows (e.g., thoseof nontaxable municipal bonds) or to measure value of projects. In thecontext of this patent, IRR is used in this generic sense to include nontaxable cash flows, and does not imply anything including that the cashback cash flows are a “return” since in fact these cash flows aremerchant discounts.

The next column shows that the IRR to the policyholder before tax (andto the issuing life company prior to tax) is equal to 4.72%.Importantly, however, the after-tax cash flows to the policy owner areequal to 4.5% as shown in the far right column. That is, the effectivetax rate, which is equal to one minus the after-tax rate divided by thepre tax rate, is only 4.66%, whereas, in a traditional deferred annuity,the effective tax rate on benefits is equal (referring to the aboveexample) to approximately 29.8%.

Another advantage of the debit card annuity preferred embodiment is thereduced cost of sales in the form of eliminating or greatly reducingcommissions to life insurance agents. In a preferred embodiment what issold to a customer is a debit card which is linked to a storage ofvalue, which happens to be an annuity balance rather than a bankaccount. This sale is much simpler for the customer compared to thetraditional and current art sale of a complicated annuity itself.Second, the benefits of the debit card annuity are much greater thanthat of the traditional annuity and, therefore, paying largecompensation to sell the product is not necessary.

Another advantage of the debit card annuity preferred embodiment is thefavorable relationship to the policyholder's after-tax return and thecost of the liability to the insurance company. The insurance company'safter-tax cost of funds is shown below using the example from the tablein FIGS. 10A and B:

Pre-Tax Insurer After-Tax Insurer End of Year Cash Flows Cash Flows 0$100,000    $100,000    1   $(76)   $301 2   $(208)   $218 3   $(400)  $97 4   $(651)   $(63) 5   $(966)   $(263) 6 $(1,344)   $(506) 7$(1,788)   $(791) 8 $(2,300) $(1,120) 9 $(2,881) $(1,494) 10 $(3,534)$(1,914) 11 $(4,260) $(2,383) 12 $(5,062) $(2,900) 13 $(5,941) $(3,467)14 $(6,899) $(4,086) 15 $(7,939) $(4,758) 16 $(9,062) $(5,484) 17$(10,272)  $(6,266) 18 $(11,568)  $(7,105) 19 $(12,955)  $(8,002) 20$(136,454)  $(130,979)  Pre-tax cost of funds to insurer 4.72% After-taxcost of funds to insurer 3.25%

The first column shows the pre-tax cost of the liability of the DCAnnuity (crediting rate of 1% plus cash back rewards). The second columnshows the after-tax cash flows recognizing that the insurer can deductincreases in reserves prior to any payment to the policyholder. As canbe seen, the after-tax cost of the DC Annuity to the insurer is 3.25%.In the preferred example embodiment, the after-tax benefits to thepolicyholder are 4.5%, which is an advantage over current art costs ofproviding retirement and transaction benefits.

In a preferred embodiment, linking the debit card reward to referralbalances also converts every customer into a networked salesrepresentative, without, however, the restrictions and prohibitionsimposed by agent licensing and commission anti-rebating laws.

In a preferred embodiment, the annuity debit card rewards are alsolinked to changes in CPI-U, so that future purchases are immunizedagainst changes in inflation and taxation. In another preferredembodiment, the annuity debit card rewards are linked to unexpectedchanges in CPI-U so that future purchasing power is immunized againstunexpected changes in inflation and also are free from tax.

In a preferred embodiment, any or all unused rewards in a given year maybe carried over for use in future years. Optionally, these carried-overrewards may receive additional rewards to provide incentives forincreases in policyholder policy persistence as well as greater deferredbenefits to policyholders.

In an embodiment, a life insurance company issues its own branded creditcard to deferred annuity, immediate annuity, or life insurancepolicyholders. A life insurance company links a debit card to acustomers deferred annuity (variable or general account), immediateannuity, or life insurance policy. In either a debit card or credit cardembodiment, the DC or CC will provide rewards upon the purchase of goodsand services. The crediting rate of the life insurance company'spolicyholder's deferred annuity is maintained well below the market rateoffered by other competitors. The crediting rate which is guaranteed bythe company may be set to the statutory minimum. For products such asindexed annuities, which offer a crediting rate which is tied to theperformance of an index such as the S&P 500, the life insurance companyoffers its customers smaller participation rates, lower caps, smallerincome rider benefits, and otherwise significantly lower guarantees thanits competitors. The total value of the accumulation phase is (1) thelower-than-market crediting rate and (2) rewards related to purchasesmade on the DC or CC. The DC or CC rewards may also be inflation-linked,for example, they will increase annually based upon the annual increasesin the CPI-U index. The reward derived from consumption isinflation-linked and not taxable, whereas only the minimum creditingrate is taxable in a deferred ordinary manner. The result is anefficient after-tax, after-inflation, or real after-tax consumptionstream provided to the policyholder.

If desired, in some embodiments, a fee-based rewards program can beimplemented. For example, it can be structured such that a customeropens a card account and pays an upfront fee, an annual fee, or someother form of fee. The fee entitles the customer to certainrewards/points over a certain period of time. In this embodiment, therewould be no inclusion of an associated annuity or financial account thatis administered by the offering entity. The upfront fee is effectively“rebated” to the customer over time in the form of rewards (cash-back,points, etc.). A computer system can be implemented to structure thisfee-based rewards program such as to receive and record the fee,administer the credit card account, issue rewards at the rate specifiedwhen the account was opened, and track eligible, available, or maximumrewards.

As already mentioned, in some preferred embodiments, the reward or therate of reward could be greater than the percentage that the credit cardcompany collects when payments are provided using the credit card as theform of payment (i.e., the interchange revenue).

In the illustrative embodiments, cash-back rewards can provideparticular advantage as opposed to types of rewards issued as result ofcard usage. However, it is understood that the present embodiments arealso applicable to other types of rewards.

A surety company optionally may be engaged to provide a guarantee thatthe reward benefits accrued by customers are delivered even if thefinancial institution administering the rewards program becomesfinancially incapable of honoring the acquired rewards. The surety isused to guarantee the rewards program of the credit card for customersof the insurance company and another form of insurance (if desired) canbe used to guarantee the financial account.

With reference now to FIG. 11, computer system 100 can be the creditcard or insurance company's computer system, which may comprise acomputer 420 and database 440. Computer system 100 is configured tocommunicate over a line of communication 1121 with a surety company'scomputer system 1100, which may comprise a computer 1120 and database1140. The surety company computer system 1100 receives transaction datafrom the use of customer credit cards 10 for purchases from thefinancial institution administering the credit cards. The computersystem that administers or provides credit card services and/or operatesthe rewards program (e.g., issues rewards under the program) may be partof computer system 100. However, different arrangement also can exist,for example, arrangements in which an outside entity administers thecredit card transactions and/or rewards program.

The surety company may be in communication with the computer system thatadministers the credit card usage or rewards programs, or possiblycommunicates with the insurance company's computer system (e.g., thesystems that administer the financial account) directly or indirectlythrough other entities such as the credit card entity's computer system.Other arrangements of transmitting and receiving data between financialinstitutions that can provide the necessary data to the surety companyare also contemplated. To acquire a guarantee on the rewards program,the data communication lines, databases, and computer systems areadapted to establish a surety relationship and exchange information anddata necessary to establish the relationship between the insurancecompany, the computer system that administers the credit cards or rewardprogram, the surety company's computer system, and the customers.

In some embodiments, the communications and computer interaction will bebetween the surety's computer system 1100 and the computer systems thatadminister the rewards program (maintains the rewards account, issuesrewards, determines amount of rewards, etc.). If desired, the insurancecompany computer system 100 may receive the transaction data andtransmit information and data relating to the amount of rewards earnedby each customer for transactions during a particular accrual period tothe surety company computer system 1100. The surety company's computersystem 1100 may, in response, process the received data and calculatethe amount of risk exposure the surety company has on the outstandingrewards owed by the rewards program to the insurance company's customers(the credit card users associated with the insurance product). The riskamount and tees may be communicated over communication line 1141 todatabase 1140 where the values may be stored. Various methods can beapplied to determine the appropriate fee for providing the suretyrelationship including implementing a fee that is a function of eligibleor available rewards. For example, the surety company may calculate theamount of fees necessary to guarantee the outstanding amount of rewards,and communicate this fee amount back to the insurance company computerfor payment. If desired, the values associated with the rewards programmay be updated as new transaction data is received or once during eachaccrual period.

A flow chart illustrating the implementation and processing forobtaining guarantee from a surety company on reward benefits is shown inFIG. 12. At step 1210 a computer system is adapted to provide aguarantee to customers enrolled in the rewards program for benefitsaccrued through the use of their credit cards. The computer system canbe configured to receive and store data from other computer system(s)administering the credit cards and/or reward program, where the data canrelate to the amount of rewards generated from purchases. The suretycomputer system may receive data when a customer uses her credit cardfor a transaction with a vendor.

At step 1220, the computer system stores received data and implementsprocesses that identify surety relationships, rewards accounts, andexpected or actual surety obligation if the rewards program is unable toissue the rewards. The surety relationships may include which rewardbenefits are to be covered by a guarantee, and the amount of riskexposure. At step 1230, data is exchanged between computer systems andprocesses are implemented to verify that the surety has received a feefor guaranteeing certain account (e.g., new accounts). Processes mayalso be implemented to update information in the surety's computersystem that establishes a rolling state of rewards availability oreligibility for customers, so that recent transaction data is includedin the system and new guarantee amounts are calculated. At step 1240,information may be received (e.g., at the surety computer system) thatthe rewards program is unable to handle rewards requests. Requests maybe processed in the surety system and/or guaranteed reward benefits maybe issued directly to the customer from merchants. The surety companymay be requested to guarantee the entire amount of reward benefitsaccrued by the customer until she has been reimbursed by the rewardprogram.

In other embodiments, the surety company calculates its amount ofexposure resulting from the amount of rewards guaranteed for aparticular period, and a fee to be charged for taking on the amount ofrisk. The surety company may transmits the fee(s), which is received,for example, by an insurance company computer system, and the insurancecompany stores the amount of the fee in the database for payment, wherethe payment may be communicated to the surety company along with thenext request for guarantee of subsequent accrued reward amounts. Thesurety company's computer system receive and transmit data to theinsurance company's computer system and credit card company's computersystem to implement a guarantee for the rewards program under the creditcard account. In this discussion, an insurance example was provided butits application to other areas is also contemplated.

A computer system (e.g., one or more computers) such as computersystems, network, or equipment described herein is configured to performthe illustrative method steps illustratively described herein by way ofencoded computer executable software instructions.

Those of ordinary skill understand from the present description that theillustrative processes or steps described herein can be implemented indifferent sequences or orders if desired. Also, steps can be removed,modified, or added without varying from the scope and principles of thepresent invention.

At least one objective of embodiments of the present invention is topromote a deposit of funds as a saving or investment vehicle where therights to withdraw invested funds would be restricted to prevent shortterms withdrawal and to simultaneously provide current spending abilityby way of a reward program with the use of a credit card or debit card(or similar instrument). The spending ability is preferably directlyproportionate to (e.g., is a function of) the amount of invested funds.

One or more features illustratively described herein can be implementedindividually or in various combinations. The present system, method, orrelated inventions also relate to a non-transient computer-readablemedium configured to carry out any one of the methods disclosed hereinor variations thereof. A software application(s) for carrying out themethods can be a set of instructions readable by a processor and storedon the non-transient computer-readable medium. Such medium may bepermanent or semi-permanent memory, such as hard drive, floppy drive,optical disk, flash memory, ROM, EPROM, EEPROM, etc., as would be knownto those of ordinary skill in the art.

The processes, steps, or methods illustratively described herein can beimplemented using the described examples of hardware and networkconfigurations.

It is understood that activity described from a user's perspective alsoencompasses the related features that are implemented on the system,platform, software, or process as part of providing that activity,operation, or interaction. The terms “adapted” or “configured”“implemented” indicate that software, hardware (includingcomputer-readable), or combinations thereof are implemented by way ofcomputer programs or circuitry to implement a particular structure orspecialized computer system. If the terms are not specifically used, oneof ordinary skill in the art will understand that it was contemplated ingeneral or based on the specific context.

Transmission and reception of data or information can be betweencomputers, databases, storage devices, or internal computer equipment iscarried by transmitting electrical signals (e.g., carrying packets ormessages) using computer equipment and are also carried by generatingsignals in response (e.g., consistent with the steps or processesdescribed herein). A computer or computer system can be one or morecomputers. A network can also involve multiple networks.

The terms and expressions which have been employed in the specificationare used as terms of description and not of limitations. There is nointention in the use of such terms and expressions to exclude anyequivalents of the features shown and described or portions thereof, butit is recognized that various modifications are possible within thescope of the claims to the invention.

What is claimed is:
 1. A computer system comprising: a server computingdevice configured with software in non-transient memory to: receive datarelated to a request to issue a financial transaction credit card to acustomer; receive data indicating investment of funds by customers intocorresponding long term investment financial accounts for each customer,wherein the financial accounts are configured by a computer-implementedmethod as a long term saving vehicle selected by the customers forinvestment; capture, by a point-of-sale (POS) terminal, a first set ofcredit card transaction information associated with use of the issuedcredit cards by customers when the customers spend credit available ontheir corresponding cards, the first set of credit card transactioninformation captured when the corresponding card is physically presentedto the POS terminal; capture, by a website, a second set of credit cardtransaction information associated with use of the issued credit cardsby customers when the customers spend credit available on theircorresponding cards, the second set of credit card transactioninformation captured when the corresponding card information is providedto the website via a remote computing device of the user; receive thefirst set of credit card transaction information from one or more remotecomputing systems that connect the POS terminal to the server computingdevice; receive the second set of credit card transaction informationfrom one or more remote computing systems that connect the website tothe server computing device; process the received transactioninformation, a value attribution rate, and a current account valueunderlying the financial accounts and in response generate one or moreoutputs representing current reward benefits that presently accrue tothe customers that provide additional spending resources to thecustomers, wherein the processing comprises generating amounts of rewardbenefits as a form of value received upon spending by customers from thecustomers' use of their credit cards; and transmit informationcommunicating the reward benefits currently available for consumption bycustomers, wherein the process issues reward benefits for the customers'consumption, on the customer's financial transaction credit card, inresponse to the customers' use of their credit cards using the valueattribution rate underlying the financial account, the value attributionrate based upon an untaxed reward benefits rate for the customer'sfinancial transaction credit card and a taxed interest rate for fundsdeposited in the customer's financial account; and wherein: the servercomputing device comprising a credit card provider computing device anda financial institution computing device that divides the storage andadministration of account information between the credit card providercomputing device and the financial institution computing device,comprising: the credit card provider computing device, separate from thefinancial institution computing device, creates, stores, and administerscredit card accounts for the credit cards; the financial institutioncomputing device creates and administers the financial accounts andadministers associated terms of rewards to be received from credit cardusage based on individual financial accounts; wherein the financialinstitution computing device instantiates a financial product on theserver computing device, creates a database configured to implement anelectronic structural relationship between the financial institutioncomputer device and the credit card provider computing device, theelectronic structure of the financial product comprising the long terminvestment account, the credit card account, the rewards component, andan electronic relationship between the long term investment account andthe rewards component that controls the rewards component in connectionwith usage of the associated credit card, wherein the financialinstitution computing device is configured to administer the financialproduct in the financial accounts, process and store deposits intofinancial accounts, process the financial accounts by applying the valueattribution rate to an amount on deposit in the financial account and inresponse generates a maximum eligible reward amount for each financialaccount as a function of the corresponding deposited amount, generate apercentage to be used for cash back rewards from the value attributionrate, and transmits, over a network, a rate of return or a percentage tobe used for cash back rewards, and the maximum eligible cash back amountfor corresponding credit cards to the credit card provider computingdevice; and wherein the credit card provider computing device receivesfinancial values for the transaction information from credit cardtransactions from POS terminals, and receives and processes the rate ofreturn or the percentage to be used for cash back reward, and themaximum eligible cash back amount, tracks financial values oftransactions on the credit cards, in response, the credit card providercomputing device authorizes and configures the credit card for thatcustomer to issue rewards available as cash back on the credit card inaccordance with the specified attribution rate for the financialproduct, and processes the financial values with the percentage for cashback rewards and in response, generates a cash back reward benefit,authorizes and configures the cash back reward benefit on thecorresponding credit cards; accumulates the cash back reward benefitonto the credit cards for current use on the corresponding credit cards;and compares the cash back reward benefit to the maximum eligible rewardamount and in response, prevents additional rewards from being availableon the cards; further wherein the server computing device processesreceived credit card transaction information and amounts on deposit inthe financials account and generates two data streams from theprocessing, a first data stream comprising a deferred values streamapplied to corresponding financial accounts and a second data streamcomprising a current value stream from the reward benefits as a functionof deposited amounts in the corresponding financial account and appliedto current credit card transactions.
 2. The computer system of claim 1,wherein the server computing device: credits one of the financialaccounts at a predetermined interest rate that is a minimum allowableinterest rate under state laws, and updates a database to store a newamount for the one of the financial accounts.
 3. The computer system ofclaim 1, wherein the server computing device: provides a guarantee ofbenefits accrued to the customers under a rewards program from a suretycomputing device, wherein rewards benefit data relating to an amount ofaccrued reward benefits is communicated to the surety computing deviceand fee information for providing the guarantee of reward benefits isreceived from the surety computing device.
 4. The computer system ofclaim 1, wherein the server computing device: determines a maximumreward amount available during a specific time period as a percentage ofthe funds in The financial account, wherein the current reward benefitis subtracted from the maximum reward amount to determine a remainingreward benefit.
 5. The computer system of claim 4, wherein the servercomputing device: increases the percentage as a function of time thatthe customer maintains the financial account, thereby providing anincreasing maximum reward amount over time.
 6. The computer system ofclaim 4, wherein the server computing device: discontinues the currentreward benefit for the financial account when the remaining rewardbenefit reaches zero.
 7. The computer system of claim 1, wherein theserver computing device: associates one or more third-party financialaccounts with the financial transaction credit card; determines thetotal account value of the one or more third-party financial accounts;and determines a percentage of the total of all third-party financialaccounts to be eligible for reward benefits through use of the credit ordebit card in making a purchase.
 8. The computer system of claim 7,wherein the server computing device: combines the percentage of thetotal of all third-party financial accounts to be eligible for rewardbenefits with the percentage of the amount of funds in the financialaccount eligible for reward benefits to increase a maximum reward amountavailable during a specific time period.
 9. The computer system of claim4 wherein the computer system implements and administers financialaccounts that are annuity or life insurance accounts.
 10. The computersystem of claim 4, wherein the server computing device rolls over all orsome of the remaining reward benefit to the another time period if lessthan the maximum reward amount available during the time period isconsumed by the customer.
 11. The computer system of claim 1, furthercomprising cooperatively administering, by the server computing device,the financial transaction credit cards.
 12. The computer system of claim1 wherein the operations further comprise cooperatively administeringthe financial transaction credit cards.